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The forecaster also regresses ARt on a constant, four lags of ARt, and four lags of IP growth. The resulting Granger-causality F-statistic on the four
The forecaster also regresses ARt on a constant, four lags of ARt, and four lags of IP growth. The resulting Granger-causality F-statistic on the four lags of IP growth is 1.52. Does IP growth help predict interest rates? . The F-statistic is 1.52, which is smaller than the 5% critical value, so we conclude that IP growth does not help to predict future interest rates
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